Property and Finance LPAs

February 5, 2021
October 23, 2021

By Jane Stanfield, Associate Practitioner

Please note that this article relates to LPAs in England and Wales.
For Powers of Attorney in Scotland see What is a Power of Attorney and for Northern Ireland see Managing your affairs and enduring power of attorney | nidirect

If you were no longer able to make decisions about paying bills, setting up standing orders, selling a property or making gifts to family, how would those things be done? Would it cause a problem for family who want to support you?

A Property and Finance Lasting Power of Attorney allows you – the Donor – to give power to someone else to make decisions for you and to manage your financial affairs. 

In order to make the LPA – which is a legally binding document – you must have mental capacity to understand what you are doing and to be able to decide who you trust to be your Attorneys. All Attorneys must act in the Donor’s best interests.

As a safeguard against exploitation of vulnerable people, every LPA must have a “certificate provider” to certify that they have discussed the LPA with the Donor and that they understand what they are doing and that no pressure has been put on them. Certificate providers can be someone who has known the Donor for at least two years, or a relevant professional.  The Attorneys cannot be the certificate provider.

The Attorneys have to sign the document to show they agree to act for you and understand their responsibilities. If possible, it is wise to appoint more than one Attorney in case an Attorney becomes unable to act for some reason. You can state whether all the Attorneys have to agree unanimously on all decisions or whether individual Attorneys can make decisions for you on their own.

You can choose to set up your Property and Finance LPA so that your Attorney can act for you immediately, or so that they can only act for you if you have been assessed as lacking capacity to do it yourself.  While you still have mental capacity, you can overrule your Attorney or cancel the LPA altogether. If you no longer have the mental capacity to make that decision then you cannot change the LPA.

LPAs must be registered with the Office of the Public Guardian in order to be used. 

You may choose to use a solicitor or will writer to draw up your LPA, but it is possible to complete the forms yourself so that the only costs will be the registration fee of £82.  This fee is reduced or waived in cases of low income.

Lasting Powers of Attorney forms can be completed online and then printed and signed.

For more information visit the government website on making, registering or ending a lasting power of attorney here.

Enduring Powers of Attorney, made before LPAs came in in 2007, are still valid.

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